On December 31, 2015, White Corporation had the following account balances related to credit sales and receivables prior to recording adjusting entries:

Allowance for Doubtful Accounts	$4,000	Credit (normal) balance
Sales Revenue (all credit sales)	$650,000
Accounts Receivable	$62,000

Compute the adjusted balances for bad debts expense and for the allowance for doubtful accounts under each of the following assumptions (the two questions are INDEPENDENT):

• An aging of accounts receivable is completed. It is estimated that $22,400 of the receivables outstanding at year-end will be uncollectible.

Bad Debts Expense	Allowance for Doubtful Accounts (adjusted balance)

• It is estimated that 2% of credit sales for the year will prove to be uncollectible. (Note that this is an independent problem relative to #1 above).

Bad Debts Expense	Allowance for Doubtful Accounts (adjusted balance)

Show computations here: